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| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2894 Introduced 2/14/2018, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED:
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Amends the Mortgage Foreclosure Article of the Code of Civil Procedure in relation to short sales of property. Provides that, if an offer to purchase either a mortgage or residential property is made by an entity with a tax-exempt filing status under Section 501(c)(3) of the Internal Revenue Code or an entity that controls, is controlled by, or is under common control with an entity with such tax-exempt filing status, no mortgagee may require, as a condition of sale or transfer to any such entity, any affidavit, statement, agreement, or addendum limiting ownership or occupancy of the residential property by the mortgagor and, if obtained, the affidavit, statement, agreement, or addendum does not provide a basis to avoid a sale or transfer nor is it enforceable against the acquiring entity or any real estate broker, mortgagor, or settlement agent named in the affidavit, statement, or addendum. Effective immediately.
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| | A BILL FOR |
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| | SB2894 | | LRB100 18008 JLS 33196 b |
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| 1 | | AN ACT concerning civil law.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Code of Civil Procedure is amended by |
| 5 | | changing Section 15-1401.1 as follows:
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| 6 | | (735 ILCS 5/15-1401.1) |
| 7 | | Sec. 15-1401.1. Short sale in foreclosure. |
| 8 | | (a) As used in For purposes of this Section: , |
| 9 | | "Short short sale" means the sale of real
estate that is |
| 10 | | subject to a mortgage for an amount that is less
than the |
| 11 | | amount owed to the mortgagee on the outstanding
mortgage note. |
| 12 | | "Residential property" means real property on which there |
| 13 | | is a dwelling unit with accommodations for 4 or fewer separate |
| 14 | | households and occupied, or to be occupied, in whole or in |
| 15 | | part, by the mortgagor; however: |
| 16 | | (i) "residential property" is limited to the principal |
| 17 | | residence of a person; |
| 18 | | (ii) "residential property" does not include an |
| 19 | | investment property or residence other than a primary |
| 20 | | residence; and |
| 21 | | (iii) "residential property" does not include |
| 22 | | residential property taken in whole or in part as |
| 23 | | collateral for a commercial loan. |
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| | SB2894 | - 2 - | LRB100 18008 JLS 33196 b |
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| 1 | | (b) In a foreclosure of residential real estate, if (i) the
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| 2 | | mortgagor presents to the mortgagee a bona fide written offer |
| 3 | | from a
third party to purchase the property that is the subject |
| 4 | | of the
foreclosure proceeding, (ii) the written offer to |
| 5 | | purchase is
for an amount which constitutes a short sale of the |
| 6 | | property,
and (iii) the mortgagor makes a written request to |
| 7 | | the
mortgagee to approve the sale on the terms of the offer to
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| 8 | | purchase, the mortgagee must respond to the mortgagor within 90
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| 9 | | days after receipt of the written offer and written request. |
| 10 | | (c) The mortgagee shall determine whether to accept the |
| 11 | | mortgagor's short sale offer. Failure to accept the offer shall |
| 12 | | not impair or abrogate in any way the rights of the mortgagee |
| 13 | | or affect the status of the foreclosure proceedings. The 90-day |
| 14 | | period shall not operate as a stay of the proceedings.
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| 15 | | (d) If an offer to purchase either a mortgage or |
| 16 | | residential property is made by an entity with a tax-exempt |
| 17 | | filing status under Section 501(c)(3) of the Internal Revenue |
| 18 | | Code or an entity that controls, is controlled by, or is under |
| 19 | | common control with an entity with such tax-exempt filing |
| 20 | | status, no mortgagee may require, as a condition of sale or |
| 21 | | transfer to any such entity, any affidavit, statement, |
| 22 | | agreement, or addendum limiting ownership or occupancy of the |
| 23 | | residential property by the mortgagor and, if obtained, the |
| 24 | | affidavit, statement, agreement, or addendum does not provide a |
| 25 | | basis to avoid a sale or transfer nor is it enforceable against |
| 26 | | the acquiring entity or any real estate broker, mortgagor, or |